GOLDEN SUN SECURITIES·2025-12-28 11:19Investment Rating - The report maintains a rating of "Buy" for the industry, indicating a positive outlook for investment opportunities in the commercial aerospace sector [1]. Core Insights - The commercial aerospace sector is expected to experience significant growth driven by a combination of fundamental improvements and policy support, with a notable emphasis on becoming a "space power" as highlighted in the recent Fourth Plenary Session of the 19th Central Committee [2][15]. - The report outlines a multi-faceted catalyst for growth, including accelerated satellite launch schedules, technological breakthroughs in reusable rockets, and a series of supportive policies from the government aimed at enhancing the commercial aerospace landscape [2][15]. Summary by Sections Policy Developments - The Fourth Plenary Session on October 23, 2025, emphasized the importance of building a manufacturing and aerospace power, leading to the establishment of a dedicated Commercial Aerospace Office to streamline regulatory processes [2][15]. - A series of policies have been introduced to promote high-quality development in commercial aerospace, including a plan to integrate commercial aerospace into the national development framework by 2027 [2][15]. Industry Developments - The report notes that over 50,000 low-orbit satellites have been proposed, with major projects like the China Star Network and the Shanghai Yanjin Thousand Sail Constellation leading the way [3][17]. - The expected launch rate is projected to increase significantly, with an average of approximately 2,776 satellites to be launched annually from 2026 to 2035 [3][17]. Financing Support - Recent policies have focused on facilitating private investment in commercial aerospace, with measures to support IPOs for companies in this sector, including Blue Arrow Aerospace and Star River Power [4][20]. - Local governments are also providing substantial subsidies to enhance the financing environment for satellite manufacturing and launch services [4][20]. Key Investment Targets 1. Shanghai Port Bay: A leader in satellite energy systems, with significant growth potential in perovskite solar cells, which are expected to see increased adoption due to cost advantages [5][21]. 2. Dongzhu Ecology: Engaged in acquiring a majority stake in Kai Rui Xing Tong to enter the satellite communication sector, with strong growth in revenue and profitability anticipated post-acquisition [9][22]. 3. Other Notable Companies: Companies such as Jintanlang, Zhongheng Design, and others are also highlighted for their involvement in various aspects of the commercial aerospace industry, including satellite energy, communication, and launch facilities [9][30].